estate planning
Loopholes Tagged "estate planning"
Plain-English guides to Canadian legal rights and workarounds related to estate planning.
Beneficiary Designations: Bypassing Probate on RRSPs, RRIFs & TFSAs
Naming a beneficiary on your RRSP, RRIF, TFSA, and life insurance policies causes those assets to pass directly to your beneficiary outside of your estate — avoiding probate fees (up to 1.5% in Ontario), delays of 6–18 months, and public disclosure of your estate.
RDSP Rollover From a Parent or Grandparent’s Estate — Move Certain Registered Funds to an Infirm Child’s RDSP
When a parent or grandparent dies, certain RRSP, RRIF, RPP, PRPP, or SPP amounts can sometimes be rolled into the RDSP of a financially dependent child or grandchild with a disability.
RRIF Successor Annuitant Election — Keep a Spousal RRIF Rolling After Death
If a spouse or common-law partner is named as successor annuitant on a RRIF, the plan can often continue with far less tax friction than a lump-sum payout to the estate.
RRSP Spousal Rollover at Death — Move a Deceased Spouse’s RRSP Without Immediate Tax
A surviving spouse or common-law partner can often move RRSP proceeds into their own RRSP, RRIF, PRPP, or annuity instead of triggering immediate tax on the deceased’s final return.
TFSA Exempt Period After Death — Use the Post-Death Window Before Extra Growth Becomes Taxable
After a TFSA holder dies, the account enters a special period where only limited post-death tax sheltering continues.
Joint Tenancy and Right of Survivorship — Bypass Probate by Co-Owning Property
Property held in joint tenancy passes automatically to the surviving co-owner on death — bypassing the estate and probate entirely — but the strategy has significant tax and family law implications that must be understood first.
TFSA Successor Holder — Keep a Spouse's TFSA Tax-Free After Death
Naming a spouse or common-law partner as TFSA successor holder is often much better than naming them only as beneficiary, because the account can continue as their TFSA without using new contribution room.
Alter Ego Trust — Transfer Assets to a Trust During Your Lifetime to Avoid Probate
Canadians age 65 or older can transfer assets to an Alter Ego Trust at cost (no capital gains) and distribute assets directly to beneficiaries on death — bypassing the estate and avoiding probate fees entirely.
Spousal Trust — Defer Capital Gains Tax on Appreciated Assets Until a Surviving Spouse Dies
A qualifying spousal trust allows assets to roll over to a surviving spouse at cost — deferring capital gains tax on death until the survivor disposes of the assets or dies, potentially saving hundreds of thousands in estate taxes.
RDSP Rollover From a Deceased Parent's RRSP or RRIF — Move Retirement Money Into a Disabled Child's RDSP
In some cases, amounts from a deceased parent's or grandparent's RRSP, RRIF, or registered pension plan can be rolled into a financially dependent infirm child's or grandchild's RDSP on a tax-deferred basis.